A tweet noted on NeoGAF says that layoffs have hit id Software: "Some layoffs at idSoftware today, perhaps more to come later." Joystiq has a statement from id parent Zenimax Media saying they are "still recruiting and hiring qualified developers" for id Software, and that "development work on future id titles continues unabated," while offering this confirmation of cuts at the formerly indie developer:

As part of its standard business practice, id regularly evaluates staffing to ensure it has a workforce that meets the needs of the studio. As part of that process, some id employees were recently let go.

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when Q2 came out, the "competitive multiplayer community" was just getting off the ground, and thats why id made Q3 to cater to their whims

and it was still all downhill from there, because id seemed to think they could do no wrong, that they were the ones setting the tone for fps in general... then half-life came along, then counter-strike, and then id was pretty much done

Eh? QuakeCon (and various other professional gaming outlets) have been hosting Q3/QL tourneys for years. I think that's a pretty good indication of the game's popularity amongst the competitive multiplayer community. That and the hordes of videos on Youtube showcasing Q3 matches and highlights.

id made Q3 a multiplayer-only game because multiplayer was always the best and most popular part of the series. Why waste time with a generic and forgettable single-player campaign which nobody will care about? id tried that with Doom 3 and it didn't end very well. Same could be said of RAGE. If id were smart, they'd go back to multiplayer-only games, preferably PC-exclusives.